2026 (1) TMI 606

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....ection 250 of the Income Tax Act, 1961 (hereinafter referred to as the "Act") and relates to Assessment Year (A.Y.) 2017-18. 2. The grounds of appeal raised by the Revenue are as under: i) "On the facts and in the circumstances of the case and in law, the of unexplained capital addition, without appreciating the facts that the balance sheet prepared by the assessee was not reliable and in absence of any valid documentary evidence, the addition made to the capital account of the assessee in the form of deposits made with M/s Honeyvick Enterprises P Ltd., cannot be treated as explained." ii) The appellant craves leaves to add, modify, amend or alter any grounds of appeal at the time of, or before, the hearing of appeal." ....

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....l the assets in Capital Account. Hence, during the course of assessment proceedings, the assessee was asked to submit the working of opening Capital Balance alongwith documentary evidences thereof. In response, the assessee has submitted the reply alongwith documentary evidences thereof. On perusal of the same, it is found that the assessee has made deposits of Rs. 2,27,18,959/- with Honeyvick Enterprises Pvt. Limited and the same has been made addition in Capital Account. Further, the assessee has not submitted any documentary proof regarding deposits. Therefore, during the course of assessment proceedings, the assessee was show caused as to why the capital introduction made during the year should not be added as unexplained cash credit u/....